With around $18 billion in work-related expenses being claimed each year, the Australian Taxation Office (ATO) will continue to pay close attention to these tax deduction claims to make sure they are correct. The ATO focuses on occupations with a pattern of large or rising claims, as well as claims which do not fit the pattern for a particular occupation.
As reminded by our Tax Agents in CLY Tax Accountants & Bookkeepers Lilydale, this year the ATO is writing to around 218,000 people employed in the following occupations:
- Building construction project managers and supervisors
- Building construction labourers
- Sales and marketing managers
The ATO have found people in these groups are at higher risk of making mistakes with their work-related expenses due to the types of deductions they are entitled to claim.
When completing your Tax Return this year, it is important to remember you can only claim the work-related expenses you are entitled to.
Some things you should consider are:
- You must have incurred the expenses in the year you are claiming them
- The expense must be work-related and not private
- If the expense has been reimbursed by your employer it cannot be claimed
- Receiving an allowance from your employer does not automatically entitle you to a deduction
If your claims total more than $300 you need to keep records to support your claim. You can also use records other than paper receipts.
We often see people who do not separate private expenses from legitimate work-related ones. You should claim deductions only for things you paid for with your own money to help you earn an income.
Sometimes we see mistakes such as one sales manager who claimed for mobile phone calls based on the time spent at work, rather than the work-related use of the mobile phone.
Many building construction labourers drive a vehicle to work each day. If they can prove they have had to carry bulky equipment then this travel becomes a deductible expense. However they must be able to verify that that their employer requires them to carry such equipment as part of their job, and that there is no alternative storage solution at the workplace. If the employer does provide secure storage, then the deduction cannot be claimed.
Our registered Tax Agents and Public Accountants servicing Lilydale, Ringwood, Croydon and surrounding suburbs are very experienced in occupation-specific information including guides for those in sales and marketing and the building and construction industries. Please Contact Us ASAP andwe are here to help you get your deductions right this tax time.